Sickness absence is generally accepted to cost UK businesses 12.2 billion pounds a year, according to the latest figures published by the Confederation of British Industry (CBI).
How much does sickness absence cost your company?
This is a difficult question to answer but in original research, Unum found that sickness absence could cost UK businesses as much as 16% of payroll. In response to this cost, Unum continues to help businesses control the cost of absence through our vocational rehabilitation services.
However, the majority of companies do not measure or analyse their staff absences and the related costs to their business.
What every employer should know
- Cost of sickness absence amounts to more than just salary costs. Motivation, recruitment and the well-being of the whole work-force may be additional factors.
- A small handful of long-term absences can seriously increase the overall annual cost of absence.
- Modern trends mean that absences and legal costs relating to stress and other mental illnesses are a significant business risk.
- Employers adopting a comprehensive insurance scheme that provides vocational rehabilitation services could shorten many long-term absences.
Unum's Cost of Absence Calculator
Cost data can be a powerful way of grabbing the attention of senior managers in your company.
By feeding in real data or informed estimates to our Cost of Absence Calculator we can provide you with an indication of your likely absence costs.